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Olga Triay Bagur
- 11 June 2025
- THE INTERNATIONAL ROLE OF THE EURO - BOXThe international role of the euro 2025Details
- Abstract
- Payments play a critical role in the global economy, with cross-border transactions largely processed through correspondent banking networks, which are often slow and costly. Fast payment systems (FPS) have emerged to address these inefficiencies, settling transactions in seconds. However, global FPS connections remain fragmented, concentrated in regional clusters, with limited interoperability due to economic, technical, and geopolitical barriers. Geopolitical tensions significantly impact the likelihood of interlinking FPS, potentially reducing connections and increasing trade costs. To mitigate fragmentation risks, initiatives like the G20 roadmap and the ECB's exploration of interlinking TIPS with other FPS aim to enhance the global payment infrastructure.
- JEL Code
- E42 : Macroeconomics and Monetary Economics→Money and Interest Rates→Monetary Systems, Standards, Regimes, Government and the Monetary System, Payment Systems
F15 : International Economics→Trade→Economic Integration
F30 : International Economics→International Finance→General